I am in my search and would like to discuss with someone in regards to these two options.

#1 Raise a $2-10M in a micro-fund get 10% of the fund committed upfront then once the deal is found call the rest of the capital to purchase the deal (and call capital for potential additional deals / add-ons later on).
-What are the costs to get this created? Legal fees etc? Do you just need to write up a PPM to get this going?

#2 Just start creating a list of interested investors, keep them updated as I am searching for deals and once a deal is under LOI raise the money before closing.
-What are the costs of this legal fees etc?

In either case and depending on the deal size I would put in 5-30% of the capital into the deal to show investors I have "skin in the game".

My thoughts on

#1 I think it might sound better to sellers/brokers if I do #1 because that shows I have committed capital and would feel more confident going into LOI that I have the funds needed to purchase the deal. It also locks in investors somewhat to funding my deal. Are the costs of creating a fund higher than doing #2. It also helps me to keep on rolling and buy additional businesses because I could view how much capital is pledged. It helps with know what deal sizes I can and cannot take on.

#2 On the other hand it might stress me out a bit if I have capital committed but it takes a while to find a deal, But it is only 10% of their commitment upfront. The legal costs might be larger.

Does anyone have knowledge in these two options and could provide direction for me?
Does anyone have any referrals for attorneys who are well versed in doing either of these options that I could discuss with them and get quotes and their timelines for creating the legal docs?